Overview

Through the issuance of Law No. 11 of 2020 on Job Creation (“Job-Creation Law”), the Indonesian Government is essentially aiming to improve the country’s investment climate by introducing a number of strategic revisions to various laws, including the following: 1) Law No. 39 of 2009 on Special Economic Zones; and 2) Law No. 36 of 2000 on the Determination of Regulation of the Government in Lieu of Law No. 1 of 2000 on Free-Trade Zones and Free Ports as a Law, as amended by Regulation of the Government in Lieu of Law No. 44 of 2007. In line with the above-stated objective, the revisions to the aforementioned laws are aiming to optimize the potential of Special Economic Zones (Kawasan Ekonomi Khusus - “KEK”), as well as Free-Trade Zones and Free Ports (Kawasan Perdagangan Bebas dan Pelabuhan Bebas – “KPBPB”) in order to make them more investment friendly and to ultimately support economic growth across the country.[1]